succesful first fracture stage!!!

Tha last paragraph is the most important!

Latent maintains that fracture stimulations conducted on Warro-1 and Warro-2 in the 1970s were not effective at the temperature and pressure encountered at these depths.

"It has been shown that the fluids used during drilling and stimulation actually had a detrimental impact on the reservoirs production performance," the company said.

"Petrographic and clay mineralogy studies by CoreLab in 1999 indicate that the Warro sandstones are susceptible to formation damage by water based drillingfluids, and that the stimulation treatment used in Warro-2 failed due to the use of water based transport fluids and inadequate proppants."

In the 30 years since these two wells were drilled and tested there have been significant advances in drilling and stimulation technology and the understanding of reservoir properties. Through the development of under-balanced drilling techniques and advances in fluid technology, tight gas plays now have the potential to be commercially viable, according to Latent.

Latent says that an analogous US gas field, Jonah in southwest Wyoming, was also discovered in the early 1970s and subjected to fraccing treatments that were damaging to the formation, leading to the conclusion that it was
uncommercial.

"It was not until the mid 1990s that the field was re-entered, and with modern completion techniques Jonah was established as one of the most prolific gas fields in North America," Latent said. "It presently produces 680 million cubic feet per day from 2400 wells with total
estimated recovery of greater than 14 trillion cubic feet."
The Warro-1 and 2 wells have several significant similarities to the Jonah Field,
according to Latent.

"In fact, some characteristics in the Warro Field that are considered superior to those found at the Jonah Field."
Schlumberger was commissioned to undertake a reservoir characterisation and stimulation evaluation of Warro in September 2007.

This reservoir simulation work indicated that if the Warro wells are successfully stimulated by hydraulic fracturing using the appropriate frac fluids and proppant, about 50% of the fields 4-7Tcf of gas was likely to be recoverable.

http://www.latentpet.com/_content/documents/528.pdf

JB